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January layoffs hit 108,435, worst since Great Recession, as tech and finance cuts surge

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108,435 layoffs in January as hiring plans hit record low

U.S. employers announced 108,435 job cuts in January 2026, the highest January total since 2009 when 241,749 cuts were announced during the Great Recession, according to Challenger, Gray & Christmas.

January layoffs were up 118% from January 2025 (49,795 cuts) and up 205% from December 2025 (35,553 cuts). It was the highest monthly total since October 2025, when 153,074 cuts were announced.

Employers announced just 5,306 hiring plans in January, the lowest total for the month since Challenger began tracking hiring announcements in 2009. Hiring was down 13% from January 2025 and 49% from December.

Transportation led with 31,243 job cuts, driven by UPS announcing 30,000 layoffs after severing its delivery arrangement with Amazon. UPS workers are losing jobs because Amazon built its own competing delivery network.

Technology was second with 22,291 cuts. Amazon announced 16,000 layoffs, mostly corporate positions. CEO Andy Jassy said AI would cost jobs in coming years, but Challenger said these cuts were due more to over-hiring and restructuring.

Health care announced 17,107 job cuts, the highest for the sector since April 2020 during the pandemic. Challenger said hospitals are 'grappling with inflation and high labor costs' and 'lower reimbursements from Medicaid and Medicare.'

AI was cited as the reason for 7,624 job cuts in January and 54,836 layoffs in all of 2025. Tariffs were cited for just 294 cuts in January, down from 7,908 in all of 2025.

The BLS reported job openings fell to 6.54 million in December 2025, the lowest since September 2020 and down 386,000 from November and more than 900,000 from October. There were 0.87 jobs per unemployed worker, the lowest since February 2021.

ADP reported private sector employers added just 22,000 jobs in January, the weakest since a Covid resurgence caused losses in January 2021. The official January jobs report was delayed by the federal government shutdown.

More than 100 companies filed WARN Act notices of significant layoffs in January. In 2025, employers announced 1,206,374 total job cuts, up 58% from 2024 and the highest since 2020.

💰Economy🏛️Government

People, bills, and sources

Andy Challenger

Chief revenue officer, Challenger, Gray & Christmas

Andy Jassy

CEO of Amazon

UPS

Largest U.S. package delivery company

Dow Inc.

Chemical manufacturer

What you can do

1

If you've received a layoff notice, check whether your employer filed a WARN Act notice. The Worker Adjustment and Retraining Notification Act requires employers with 100+ workers to give 60 days' notice of mass layoffs. If they didn't, you may be entitled to back pay.

2

File for unemployment benefits immediately after a layoff at your state's unemployment office. Benefits vary by state but typically replace about 40-50% of your previous wages for up to 26 weeks.

3

The job market has 0.87 openings per unemployed worker. Prioritize your job search in health care (despite recent cuts, it's still the largest hiring sector), government, and education. Use USAJobs.gov for federal positions.

4

Contact your U.S. representative about supporting extended unemployment benefits and job retraining programs. The WARN Act and unemployment insurance systems are the safety nets. Ask whether they're adequate for the current labor market.